Analyst Note| Brian Bernard, CFA, CPA |
Grainger's ability to source highly sought-after safety and cleaning supplies during the pandemic allowed the firm to expand its top line by about 3% in 2020. While demand for such products has begun to wane, sales of Grainger's traditional products are on the rise. With the United States economy strengthening, and Grainger's endless assortment business gaining traction, the firm sees stronger growth in 2021. Indeed, management projects sales of $12.7 billion-$13 billion in 2021, or 10%-12.5% organic sales growth (adjusted for two less selling days in 2021).